Correlation Between Cuhadaroglu Metal and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Guler Yatirim at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cuhadaroglu Metal and Guler Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Guler Yatirim Holding, you can compare the effects of market volatilities on Cuhadaroglu Metal and Guler Yatirim and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cuhadaroglu Metal with a short position of Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Guler Yatirim.
Diversification Opportunities for Cuhadaroglu Metal and Guler Yatirim
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cuhadaroglu and Guler is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding and Cuhadaroglu Metal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cuhadaroglu Metal Sanayi are associated (or correlated) with Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Guler Yatirim go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Guler Yatirim
Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to generate 1.21 times more return on investment than Guler Yatirim. However, Cuhadaroglu Metal is 1.21 times more volatile than Guler Yatirim Holding. It trades about 0.39 of its potential returns per unit of risk. Guler Yatirim Holding is currently generating about 0.12 per unit of risk. If you would invest 2,100 in Cuhadaroglu Metal Sanayi on September 26, 2024 and sell it today you would earn a total of 570.00 from holding Cuhadaroglu Metal Sanayi or generate 27.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Guler Yatirim Holding
Performance |
Timeline |
Cuhadaroglu Metal Sanayi |
Guler Yatirim Holding |
Cuhadaroglu Metal and Guler Yatirim Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cuhadaroglu Metal and Guler Yatirim
The main advantage of trading using opposite Cuhadaroglu Metal and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Guler Yatirim can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guler Yatirim will offset losses from the drop in Guler Yatirim's long position.Cuhadaroglu Metal vs. Eregli Demir ve | Cuhadaroglu Metal vs. Turkiye Petrol Rafinerileri | Cuhadaroglu Metal vs. Turkish Airlines | Cuhadaroglu Metal vs. Ford Otomotiv Sanayi |
Guler Yatirim vs. Bms Birlesik Metal | Guler Yatirim vs. Cuhadaroglu Metal Sanayi | Guler Yatirim vs. Politeknik Metal Sanayi | Guler Yatirim vs. Sodas Sodyum Sanayi |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |